NEW YORK (TheStreet) -- Shares of New Gold (NGD) - Get New Gold Inc. Report hit a 52-week low of $3.52 on Friday after the company reported weak third-quarter results and gold prices sank to a four-year low.
The company reported adjusted earnings of a penny a share on revenue of $169.3 million, down year-over-year from 4 cents a share and $196 million. Analysts polled by Thomson Reuters had expected earnings of 3 cents a share on revenue of $205.79 million for the quarter ended September 30, 2014.
Gold prices also sank Friday, as futures for December delivery fell nearly 3% to $1,162.10 an ounce, the lowest point since July 2010, according to Bloomberg. Gold prices are poised for a 5.3% drop this week, which would mark the greatest decline since September 2013. The precious metal is also on track for its first consecutive monthly loss this year.
The decline in gold prices occurred thanks in part to the Bank of Japan, which helped strengthen the U.S. dollar when it bolstered its stimulus by increasing its annual target for enlarging the monetary base to 80 trillion yen, or $723 billion, up from a range of 60 to 70 trillion yen. The move sent the yen to a six-year low against the dollar.
Separately, TheStreet Ratings team rates NEW GOLD INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEW GOLD INC (NGD) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself."
- You can view the full analysis from the report here: NGD Ratings Report